Teck Resources considers sale of minority stake in coal business
2022-02-24 13:50:40 [Print]
Canada-based Teck Resources Ltd. is exploring the sale of a minority stake in its metallurgical coal business as it seeks to take advantage of surging prices for the commodity, people familiar with the matter said.
The Canadian miner has approached parties including smaller rival Arch Resources Inc. to gauge their interest in buying a stake of 10% or more in the business.
Teck's coal business could be valued at about US$8 billion. The increasing demand for the commodity could push that figure higher.
Teck Resources produced more than 21 million metric tons of steelmaking coal in 2020 from four locations in western Canada. The business accounted for 35% of the company's gross profit.
The Canadian miner has approached parties including smaller rival Arch Resources Inc. to gauge their interest in buying a stake of 10% or more in the business.
Teck's coal business could be valued at about US$8 billion. The increasing demand for the commodity could push that figure higher.
Teck Resources produced more than 21 million metric tons of steelmaking coal in 2020 from four locations in western Canada. The business accounted for 35% of the company's gross profit.
